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Hilsenrath Confused Midde-Class "Responded Strongly" To "Offensive" Question Why It Isn't Spending
Yesterday, in what he has since dubbed "a tongue-in-cheek and ironic letter" to "stingy" US consumers, Fed mouthpiece Jon Hilsenrath asked, why even though "the sun shined in April... you didn’t spend much money."
He then framed the middle-class' lack of willingness to spend, spend, spend as follows:
We know you experienced a terrible shock when Lehman Brothers collapsed in 2008 and your employer responded by firing you. We know stock prices collapsed and that was shocking too. We also know you shouldn’t have taken out that large second mortgage during the housing boom to fix up your kitchen with granite countertops. You’ve been working very hard to pay off this debt and we admire your fortitude. But these shocks seem like a long time ago to us in a newsroom. Is that still what’s holding you back?
Confusing indeed: it appears the near collapse of the financial system due to $142 trillion in debt, which has since been "fixed" with $57 trillion in more debt...
... wasn't very confidence inspiring.
Hilsenrath then added that 'You should feel lucky you’re not a Greek consumer" and concluded that "The Federal Reserve is counting on you too. Fed officials want to start raising the cost of your borrowing because they worry they’ve been giving you a free ride for too long with zero interest rates."
Because, you see, the Fed is giving the middle class a "free ride", not people such as Wall Street's latest billionaire.
In any event, it appears that in the 24 hours that followed, America's "stingy" middle class decided to write back to Hilsenrath. This is what it said (highlights ours).
HILSENRATH’S TAKE: READERS SOUND OFF ABOUT CONSUMER SPENDING SLUGGISHNESS
Readers reacted strongly to Tuesday’s Grand Central commentary, a tongue-in-cheek and ironic letter to American consumers asking why their spending had slowed in recent months.
Household spending is a real puzzle at this moment. After growing slowly for much of the recovery, consumer spending appeared to be picking up early this year. It rose 3.4% in January from a year earlier, after adjusting for inflation, the fastest pace of the expansion. It seemed to be set to rise at a quicker clip in the coming months, thanks in large part to the recent decline in gasoline prices. Instead, spending slowed through April, a development that is puzzling economists. Why did spending slow early this year when households appeared, finally, to have some wind at their backs?
We asked readers to respond. Here is a summation of what they said:
A number commented on the tone of the commentary. While a small number found the tone to be clever, many found it offensive. Some said the item showed this reporter is arrogant, elitist and out of touch with the challenges faced by many Americans. That spoke to a broader mistrust that many respondents expressed toward a wide array of American institutions, including the Federal Reserve, banks, the media, corporations and the Obama Administration. Moreover many expressed a lack of conviction that the U.S. expansion would last, or that it was spreading prosperity beyond America’s elites. Others described serious continuing financial burdens related to high debts, a rising cost of living, health care costs, and a lack of wage growth.
The item was signed The Wall Street Journal’s Central Banks team. It was conceived and written only by this reporter.
“Interest rates may be zero,” said reader Thomas Eckenrode, “but I know many people with credit card debt of $10,000 paying 15%.” He added student debt is an even bigger burden for his family.
“Simply put the middle class is debt ridden and struggling,” said reader Nate York. “Many people are hunkering down instead of casually spending.”
In a twist, car dealers Tuesday reported sales in May hit a 10-year high. That might be the first concrete sign of an actual pickup in spending this year. Judging solely from the responses of Wall Street Journal readers, however, you should not expect a big spending rebound. They say a deep undercurrent of mistrust and economic strain still holds back many Americans, regardless of what the numbers say.
In conclusion all we can add is that we are surprised Hilsenrath did not end with Obama's favorite aphorism: "Do not get cynical. Hope is the better choice."
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FUCK YOU HILSENRATH!!!! BASTARD!!!!
Dear John,
Please let me un-confuse you.
First, the american consumer is hopelessly in debt. Perhaps the correct terminology for what we once called the "consumer" is "debt slave".
Second, the american "debt slave" has decided, consciously or otherwise, to attempt to un-fuck themselves by NOT spending money that they don't actually have.
Third, those highly praised auto numbers you opine about, well take a closer look at how the buyers are paying for them, yeah I thought that'd shut your piehole.
Fourth, While there is certainly no "I" in team, there is certainly and M and an E as in YOU.
In closing John, once you manage to reallocate your appendages known as arms from typing nonsensical drival and put them to use extricating your head from your ass, please read this.
FUCK YOU, FUCK THE FED, FUCK YOUR WALL STREET SUCK PUMP CRONIES! They have already CONSUMED the american debt slave. Their is nothing but scraps left to fall from the table. That is, until this house of cards falls down, for real this time.
Until then, I and many, many others sit patiently awaiting the final reset.
Let them eat cake.
Hilsenrath is insult to injury. The 1% crashed the economy and now they complain that the middle class does not stupid things again to pull their wreck out of the mud.
Hey, we were spending, spending, spending, but it FAILED. The middle class behaves very rational now and learned the lesson: you can't spend more than you earn. They are not too stupid to do the same mistake again they were talked into before.
We are spending... but with our purchasing power of the dollar receding and real household earnings also falling and the real cost of healthcare going through the roof the average worker in the US is going backwards.
We're spending alright... just only on those things that are keeping us alive - discretionary spending... what's that?
Spending What? Since QE has been and continues to be "NOT Printing Money" but instead a transfer from the FED to the FED since the so called "printed money" just went
to the reserve accounts of banks, which allowed them to have more credit to speculate in markets and drive up the stock market...the people,sheeple don't have one
penny more than before all the disinformational propaganda of the Fed. The fed is useless, ineffectual and nothing more than propaganda arm of the banks.
Unfortunately, most everyone continues to believe they have an actual effect on rates as opposed the the artificial effect on rates. And there has not been
the slightest increase in lending by the banks.
Inflation is only occurring in the price of stocks and the rising stock market. The unwind of QE if there ever is one will not cause any inflation since
the electronic transfer of money to bank reserves can easily be unwound with more double books bookkeeping.
Once real estate collateral lost somewhere around %40 more of its value we have been and remain in nothing more than
a defationary environment with no chance of recovery. Let the market crash to a pre-QE intervention level and let the recovery begin
without the Fed taking credit after the fact for something they had nothing to do with in the first place.
Rates should be allowed to rise to reflect the risk of loans and then maybe there would be some lending.
The Myth of the Fed, the Fed should be eliminated and the perpetual disinformative bullshit they publish should stop.
Hilsenrath, consider that pathological liars like you and your institution tend to believe their own pathological lies. Seek help and stay away from
monetary and social policy. Pathetic shit.
Where does one even start? OK, so this idiot thinks his place is to direct the rest of us on "spending" our currency. Really? We need an arrogant SOB to control our purchasing activities because we can't do that ourselves? OK, so when we spend our own accounts into oblivion (which he has already helped do for the entire country...) we get to point fingers at him and he will take responsibility for our actions? I know sleazy used car salesmen with more integrity. OK Hlsenrath - you put your entire holdings in a public trust that anybody can take from when a decision they make turns out badly. Then maybe I'll at least listen to one word that comes out of your mouth.
'Jon.Hilsenrath@wsj.com'; 'Victoria.McGrane@wsj.com'; 'Pedro.daCosta@wsj.com'; 'Michael.Derby@wsj.com'; 'Nell.Henderson@wsj.com'; 'Brian.Blackstone@wsj.com'; 'jason.douglas@wsj.com'; 'Ben.Leubsdorf@wsj.com'; 'Paul.Hannon@wsj.com'; 'Jacob.Schlesinger@wsj.com'; 'Sarah.Portlock@wsj.com'; 'Kate.Davidson@wsj.com'
Send them all this: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014...
boiled rope is a useful tool in bringing about a clear understanding of a situation
It's music to my heart, to know the CRIMINALS, have resorted to BEGGING!
gonna havta suffa CRIMINALS
The beatings will continue until morale improves!!!!!
if anyone here wants to see who has money (credit) to spend just go to the shiitiest part of town. it will blow your mind. BRAND NEW gm pickups everywhere. new chargers also. every welfare hack has a new car courtesy of obama. they are also standing around talking on their obamaphone...better phone than i have. everyone has 2 new babies on the hip and 3 kids more trailing.
wait til the 'new wealth' checks stop for the welfare group and man are they going to be pissed....BUY AMMO...!...hahahahaha!
http://dailybail.com/home/hilsenrath-speaks-bernankes-mouthpiece-hints-a...
Fuck this dumb ass Motherfucker! We are hunkered down dumb ass - unlike you and your rich ass snarky mother fucking snub ass friends and associates. Kiss my ass fucker. And take your QE, ZIRP, NIRP and smart ass style and cram them up yer ass.
The chart looks great... everything is on the rise!